6. |
On 1st January 200, RAMAN Ltd. wants to implement its programme of expansion but finds that there is a short of funds. On 1st January, 2001, it had a balance in Bank – Rs. 1,80,000. |
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From the following information, prepare a statement for Board of Directors to show how the overdraft of Rs. 68,750 as at 31st December, 2001, has arisen.
Figures as per balance Sheet as at 31st December each year are as follows: |
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| Year 2000 Rs. | Year 2001 Rs. | |
Fixed assets Stock & Stores Sundry Debtors Bank Balance Trade Creditors Share Capital (in shares of Rs. 10 each) Bills receivable |
750,000 220,000 350,000 180,000 270,000 250,000 87,500 |
1,120,000 330,000 335,000 68,750 350,000 300,000 95,000 |
(OD) |
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The profit for the year ended 31st December 2001 before charging depreciation and taxation amounted to Rs. 2,40,000.
5,000 shares were issued on 1st January 2001 at a Premium of Rs. 5 per share. |
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Rs. 1,37,500 were paid in March 2001 by way of Income Tax. |
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Dividends were paid as follows:- |
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For 2000 (Final) on the capital on 31.12.2000 at 10% less tax at 25%.
For 2001 (intering) 5%, Free of Tax. |
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7. |
The Trading Account of M/s Abraham & Co. for the year ending 31st March, 2001 is given below. |
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| Rs. | | | Rs. |
To Opening Stock To Purchases less Returns To Gross Profit c/d |
68,480 156,940 29,400 |
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By Sales Less Returns By Closing Stock |
196,000 58,820 |
| 254,820 | | | 254,820 |
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A fire occurred in their godown which was situated behind their office premises, on 31st December, 2001. A considerable part of the stock of ready-made garments was destroyed by fire. The salvaged stock realised for Rs. 2,255. The stocks and the premises were fully insured against fire risks. |
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Considering the following further particulars, prepare a statement showing the amount of claim to be lodged by M/s Abraham & Co. with the Great India Insurance Company Ltd. for the loss of stock only. |
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Sales for the period ending 31st December, 2001 were Rs. 1,09,200. The amount paid for the purchases was Rs. 88,016 including a cheque for Rs. 562 which was not presented to the bankers up to 31.12.2001. |
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As shown by the books of account. Trade creditors on 31.3.2001 amounted to Rs. 24,608 and on 31st December, 2001 were Rs. 22,112. Goods worth Rs. 6,390 were returned to creditors during the period ending 31st December, 2001. Working shall be treated as part of your answer. |
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8. |
(a) |
Write Short notes on:-
(i) | Public Account; |
(ii) | Contingency Fund. |
| 4x2=8 |
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(b) |
(i) | Describe with reference to Accounting Standard 7 on Accounting for construction contracts, the methods which may be used for recognising revenue on construction contracts. |
(ii) | Briefly explain the objective and scope of Accounting for the effects of changes in Foreign Exchange rates — AS. 11. |
| 4x2=8 |
__________ |